-(3)The

(3)The "Cost Reduction Crisis" Attacks at the Leading Power Lithium Battery Leader in China
author:enerbyte source:本站 click342 Release date: 2023-10-11 08:50:00
abstract:
According to Wind statistics, CATL's sales gross profit margin decreased from 43.70% in 2016 to 36.29% in 2017; As of the third quarter of 2018, CATL's sales gross profit margin has further decreased to 31.27%; The operating revenue and operating costs of Huizhou Yiwei Lithium Energy C...

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According to Wind statistics, CATL's sales gross profit margin decreased from 43.70% in 2016 to 36.29% in 2017; As of the third quarter of 2018, CATL's sales gross profit margin has further decreased to 31.27%; The operating revenue and operating costs of Huizhou Yiwei Lithium Energy Co., Ltd. (300014. SZ) lithium-ion batteries increased by 219.60% and 236.41% year-on-year, with operating costs increasing by more than operating revenue and gross profit margin decreasing by 4.05%.

According to the Wealth Securities Research Report, in the expectation of an annual 10% to 15% reduction in battery prices, CATL's ability to maintain an increase in profits depends heavily on an increase in sales. The company's current market share has reached 40%, and there is little room for future growth. The company faces risks such as sales not rising as expected and product prices falling more than expected.

Guoxuan High Tech Co., Ltd. (002074.SZ, hereinafter referred to as "Guoxuan High Tech") also mentioned in this year's semi annual report that the operating revenue and operating costs of power lithium batteries increased by 8.71% and 18.24% respectively, and the gross profit margin decreased by 5.44%. The expected change in net profit attributable to shareholders of listed companies in 2018 is 1.43% to 13.36%, partly due to the adjustment of subsidy policies for new energy vehicles and fierce industry competition, resulting in a decrease in the selling price of power lithium battery products.

It is reported that in the first three quarters of the lithium battery industry, companies achieved a cumulative revenue of 149.4 billion yuan, a year-on-year increase of 33.28%, and the net profit attributable to shareholders of listed companies was 19.025 billion yuan. Since the beginning of this year, lithium battery companies have generally had high revenue, low profits, and high accounts receivable. Many companies have slowed down their performance growth and even suffered losses.

Wang Jingzhong, Vice Chairman of the China Battery Industry Association, stated that there is still room for price reduction of power lithium batteries. As the process technology continues to mature, the cost is further reduced. At present, the purchase cost of new energy vehicles is over 100000 yuan higher than that of gasoline vehicles. From a long-term use perspective, the cost balance point of new energy vehicles is between 5-6 years, in order to gradually offset the price advantage of gasoline vehicles. The Chief Analyst of Zhenli Research, Mo Ke, mentioned that the delay in subsidy issuance has led to an increase in the company's accounts receivable, and the company's capital costs will be evenly distributed among battery costs, while bank interest and other capital costs will be amortized into products.

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